Challenges for the development of an integrated agro-food-energy-biochemical nexus in Thailand

Abstract

Purpose

This paper aims to synthesize the history of bio-refinery in Thailand and analyze the public policy challenges hindering the industry’s growth and development since year 2000.

Design/methodology/approach

The authors assembled dispersed data on the industry structure, history of investment and the current state of bio-refinery in Thailand from numerous public organizations and media outlets. The chronicle covers the initial launching and subsequent market growth of ethanol, biodiesel and bio-chemicals. The most innovative analysis in this study is the identification of the key players in the bio-refinery value chain. The authors supply insights about each player’s stake, bargaining power, strategies and relative success/failure during the past few decades.

Findings

Instead of working together to develop bio-refinery, it appears the Thai petroleum companies, policymakers and automotive companies often delay or block developments that would benefit bio-fuel and bio-chemical producers and crop growers. Conflicts of interests have caused policymakers and regulators to favor already overly protected industries. Seventeen years of bio-fuel policy from 2000 to 2016 has shown that the major objectives of the government’s bio-fuel/bio-refinery policies have failed.

Originality/value

Using Thailand as a case study, this paper illustrates the critical role of politics, special interest groups and lobbying in determining the viability of bio-fuel/bio-refinery industries in developing countries.

Citation

Sukphisal, B. and Wongsurawat, W. (2017), "Challenges for the development of an integrated agro-food-energy-biochemical nexus in Thailand", Journal of Science and Technology Policy Management, Vol. 8 No. 2, pp. 181-205. https://doi.org/10.1108/JSTPM-07-2016-0011